Earnings Matter!!

Chris warns earnings still matter, despite Newsmax’s parabolic stock run with no profits—echoing the ’90s dot-com hype. He rips CEOs for gaming estimates and analysts for groupthink, urging long-term focus over short-term noise. www.watchdogonwallstreet.com

Episode Transcript

Speaker 1 (00:00):
The Watchdog on Wall Street podcast explaining the news coming
out of the complex worlds of finance, economics, and politics
and the impact it will have on everyday Americans. Author,
investment banker, consumer advocate, analyst, and trader Chris Markowski.

Speaker 2 (00:16):
Earnings matter, folks. Again, I'm talking about newsmax and on
the podcast today and what's happening when it comes to
stocks going parabolic without any earnings. Yet it harkens back
to the nineteen nineties. That was a tangline at that
point in time by the people, you know, with the
pom poms and short skirts out cheering all of the
dot com companies with little to no prospects through the roof.

(00:39):
Earnings don't matter anymore. It's a new paradigm. Earnings always matter.
What we're we're seeing right now the earnings picture across
the board. Many companies are cutting guidance, many companies are

(01:00):
cutting guns analysts. But again, you can't really trust these
stock analysts because and you know, I'm critical of CNBC,
but some of the stuff they've done over the years
is pretty funny. I remember back in the day that
would make fun of stock analysts. And again, this is
back in the nineteen nineties too, they had their their penguins,
and they basically showed a bunch of penguins jumping off

(01:23):
an iceberg into the water, all at the exact same time.
They all say the exact same thing. So if they're
all right, look at how smart we all are. If
we're all wrong, well you know they were wrong too. Again,
such a stupid business. But anyway, neither here nor there,
let me play you a little something about earnings right now.

(01:47):
And CEOs as well, cegos they're crafty too. They're crafty too.
And again if you take a look at their employment contracts,
they have a lot to do with beating earnings, beating numbers.
How did we do for the year? Did we beat expectations?

(02:11):
And if you are able to lower expectations and beat them,
hi am a hero, you know, queue up the food
fighters or David Bowie one of their hero songs. I
hear you a while, look at that blueway earnings pay me.
That's how they get paid. So again, if the environment

(02:37):
out there smooth, CEO's can say, hey, you know what,
all things are looking a little rough. We got tariffs here,
whatever it may be, we're gonna have to lower estimates
and bing they blow them away. No one's gonna remember
that they lowered expectations and they beat them, and their
paycheck will be patted. So that's a part of it too.

(02:59):
It is again you have to be looking at This
is one of the things is looking at short term
estimates when it comes to earnings, and the importance of
looking at content companies of where you're planning on seeing
them not a quarter from now, not a year from now,
but five, ten, fifteen years from now. That type of

(03:20):
vision you can avoid a lot of this stuff. But
the reality of course, people is earnings always matter. What
start on Wall Street, dot com,